5-14 Close Out Contract

Contract closeout is the administrative procedure associated with the end of the business agreement with the supplier and the archiving of documents in the contract file. Contract closeout occurs after the supplier has successfully completed contract performance and has been accordingly compensated or when the contract is terminated for default or convenience. The primary purpose of contract closeout is to ensure that the supplier has complied with all contractual requirements and that the client’s needs have been met and fulfilled. Contracts that are improperly performed or that fail to offer best value to the Postal Service are appropriate for termination for default or termination for convenience and are addressed in detail in Section 5-13, Terminate Contract.

A contract is considered performed and fully completed when:

The CO is responsible for ensuring that the following contract closeout activities are performed:

Upon completion of contract closeout procedures, the CO must officially signify that client sign-off has been completed and include any related questions or recommendations in the contract file.